The High Cost of a Low Performer

An employee who can’t keep up with work demands takes a heavier toll on a business than some may think, new research suggests. Global staffing firm Robert Half recently asked CFOs to estimate how much time is spent coaching under-performing employees. The answer: 26 percent of working hours, on average — that’s over 10 hours out of a 40-hour workweek. Finance executives also acknowledged that hiring mistakes negatively affect team morale.

“A bad hire is tremendously expensive for a company,” said Paul McDonald, senior executive director for Robert Half. “The time and money managers spend on recruitment and training is lost, and they also have to fix under-performers’ mistakes and deal with their effects on staff morale and productivity.”

McDonald added, “A bad hire signals that your hiring process may be flawed. It could be that you are not putting sufficient weight on soft skills or are overemphasizing qualities that aren’t crucial to the role.”